For Immediate Release
Chicago, IL – November 08, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include SPDR S&P 500 ETF (NYSE:SPY) (NYSEARCA:SPY –Free Report),iShares MSCI Mexico Capped (NYSEARCA:EWW –Free Report),SPDR Gold Shares (NYSE:GLD) (NYSEARCA:GLD –Free Report),Health Care Select Sector SPDR ETF (NYSE:XLV) (NYSEARCA:XLV –Free Report) and iShares US Aerospace & Defense (NYSEARCA:ITA – Free Report).
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Here are highlights from Monday’s Analyst Blog:
Clinton Gets Past FBI Investigation: ETFs in Focus
Putting all speculation to rest, the FBI absolved Democratic candidate Hillary Clinton right ahead of the election, stating that her usage of private e-mail servers did not amount to misconduct. The issue hit Clinton’s popularity lately and pushed Republican candidate Donald Trump a step forward, tightening the race to the White House.
However, FBI’s clean sheet turned in favor of Clinton again with poll tallies of 45.3% to 43% for Trump, as per the national polling average published on nytimes. Meanwhile, most of Clinton-friendly investments gained, if we rule out the general election-induced phobia and uncertainty.
Last week's U.S. Jobs data came in favor of the Democrats, as well. October job growth of 161K, fell short of analysts’ expectation of 170-175K and September’s upwardly revised addition of 191K , but a 4.9% unemployment rate was the second-lowest in 40 years for the month before a presidential election. Wage growth of 0.4% (2.8% year over year) was also there to accompany the optimistic job report.
Below we highlight a few investing areas that should be closely watched the day before the election (read: Trump or Clinton: These ETFs to Face Same Fate ).
U.S. Stocks
If Clinton wins, the S&P 500 will likely snap its nine-day losing stretch and stage a relief-rally. But along with many analysts, we also believe that Clinton’s win is largely priced in investors’ sentiment and so there will be limited upside in the market. Barclays (LON:BARC) Plc believes that the S&P 500 Index will likely see a 3% gain. This puts SPDR S&P 500 ETF (NYSEARCA:SPY – Free Report) in focus.
Mexican Peso
The Mexican peso popped about 2.2% – the most in about a month – as the FBI confirmed that Clinton’s act was not a crime. Mexico peso is a Trump-unfriendly investment due to his plans of building a wall along the border as part of his immigration strategy and making Mexico pay for it. Thus, higher chances of Clinton winning should push iShares MSCI Mexico Capped (NYSEARCA:EWW – Free Report) higher.
Bullion
Though SPDR Gold Shares (NYSEARCA:GLD – Free Report) added about 0.07% gains on November 4 on safe haven demand, Clinton’s win may put pressure on this investment as greenback should rise and stocks should be in the positive territory. Both conditions normally go against bullion.
Healthcare
Hillary Clinton’s tweet on concerns over aggressive price increases on life-saving drugs has gained a lot of attention. Since then, her constant moves against price-gouging in the healthcare sector has kept this issue in her scope. Health Care Select Sector SPDR ETF (NYSEARCA:XLV –Free Report ) will thus be closely watched (read: How Hillary Clinton Crushed Biotech ETFs with One Tweet ).
Defense
Clinton has always been seen as a supporter of ‘ a strong U.S. military.’ Moreover, since defense and aerospace stocks gained considerably in the democratic rule even in the days of sequestration, the future of this sector looks bright. So, defense and aerospace ETFs including iShares US Aerospace & Defense (NYSEARCA:ITA – Free Report) should get a lift.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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ISHARS-MEXICO (EWW): ETF Research Reports
SPDR-HLTH CR (XLV): ETF Research Reports
ISHARS-US AEROS (ITA): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
SPDR-GOLD TRUST (GLD): ETF Research Reports
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